My First 12 Months as a Real Estate Investor…Here’s my story…
My First 12 Months as a Real Estate Investor…Here’s my story…
One year ago, today, on March 31, 2016 I purchased my first investment property… What a journey this first 12 months has been so far!!
I’ve been an entrepreneur my entire life, and have rarely worked for someone else. I had some luck in my early 20’s and was making very good money, and then I made the decision to merge my business into a partnership with a competing company, thinking together we could take the company nationwide…two and a half years later…I lost everything, was broke, in debt up to my eyeballs, lost my car, lost my home, was homeless and hit ROCK BOTTOM!! I had to borrow $150 from my Church to help me get to another city and move in with some family to get back on my feet.
I spent the next five years trying to get ahead again, while having a real J-O-B, or “just over broke”, and I later started a small side business.
In 2011, I came up with a way to eliminate most of my monthly bills, and live basically free, by going to college on scholarship, and taking a part-time job coaching college athletics. The scholarship included a meal plan, and I was able to live rent-free by being a Dorm Parent and living in the dorms. By doing this, along with my other part-time business, I drastically reduced my monthly bills, and within four years was able to pay off most of my debt, paid cash for a nice used SUV, while also saving up $30K in savings. My side business was growing still, and I was making pretty good money again.
So, in December of 2015, while on Christmas break, I began looking for additional ways to invest my savings to grow additional income and diversify more, after my previous experience of losing everything. I considered several business ventures, franchises, etc. and just happened upon an online advertisement for real estate investing. Growing up with a Grandfather who was a home builder and property developer, and also my father had some rental properties, when I was younger, I had a little knowledge of real estate, and knew they did well in it. After researching online for a few months, I discovered Bigger Pockets, and learned a lot more by reading the forums. I finally decided this was something that I felt I could do.
So, in March 2016, I began searching for a cheap property to purchase, with the intentions of purchasing it, rehabbing it and renting it out. I finally found a foreclosure property, in a small-town I was familiar with, that I was able to pick up for under $10K. I figured this would be a good one to start with and learn. Worst case scenario, I could always sell it for close to what I had in it.
After closing, I immediately placed a sign in the yard that said “For Lease or For Sale”, figuring this would help generate some interest while I did the rehab work. Within the first week, I had over 20 calls before I had even started doing any rehab. Several of the callers stated they had been looking for a fixer-upper in the area, and would like to see the property. So, I went ahead and showed the property to several of them while starting on the rehab. A few weeks later, I received a contract to sell the property “as is” for $19,900. I couldn’t believe I was able to flip it that fast without fully rehabbing it.
So, while waiting on that deal to close, I started searching for another property. I located several potential deals, and once the first deal had closed, was able to purchase a HUD property for $32K that didn't need much work, and I knew based on my research that it should rent for over $800mo. Again, I placed a sign in the yard that said "For Lease or For Sale" and also listed it on CraigsList. It only took about $2,000 to touch up a few things. Again, I started receiving a lot of calls about renting it and a few interested in buying. Within less than a month, I was able to sell it for $45K.
I was hooked at this point!! Started with $30K and was able to make close to $20K profit within my first 90 days. I now had close to $50K saved and decided to to have even more capital for rehabbing properties. It was time to put my marketing and sales background to work, and jump in full-time. So, I registered my company name and domain 4Lease4Sale (was amazed this domain was available) and started building a website that would look professional for buying and selling real estate, and leasing properties. I later would add several other motivated seller websites and landing pages to separate my company page (geared towards selling, leasing and investors) and the motivated seller sites (geared towards buying).
Since that I’ve been able to rehab and flip or wholesale flip a dozen more properties, have increased my current equity in properties owned by over $265K, have a few properties generating just under $5K monthly in mailbox checks, and have started Joint Ventures with a few Wholesalers to help save me time in negotiations, and to be able to do even more deals.
I've learned so much the past year, and most of the knowledge came from the many great people on BP, who were all more than willing to share their vast knowledge and guidance. Where else can you network daily with experienced investors, who have been in the game for many, many years and a lot of them are millionaires from the real estate industry... Thank you BP!!
My goal for 2017 is to flip 20 properties, and continue to build more capital, and add some mailbox money. I have purchased seven so far, this year, sold five and already have multiple offers on the two other I own …so right on pace.
My advice to others just getting started… You can't be afraid to fail, if so do something else. Everyone who’s successful in life at any business, probably has failed more times than they succeeded, believe me I have…but what makes them different is the tenacity to get back up and fight for their dreams and grind every day.
You've got to stop trying to figure things out and START DOING THINGS!! As I tell everyone I talk to, don't get caught up in "analysis paralysis" over contemplating wanting to know every detail. Just do it, jump in feet first, and GRIND!!Find a way, think “outside the box” and get creative. But remember, activity creates activity and to be very successful in this business, you have to treat it like a BUSINESS!!If you only invest a few hours per month, you’re only going to get a few hours of profit.
Good Luck, Keep Grinding and hitting Home Runs!! – Jeff
